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Which of the following two statements is correct? S1: Signaling theory stipulates that, because information is asymmetric, capital structure is a result of firms (managers)

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Which of the following two statements is correct? S1: Signaling theory stipulates that, because information is asymmetric, capital structure is a result of firms (managers) sending market signals to outside investors. S2: Market timing theory (windows of opportunity) states that capital structure is a result of managers timing capital markets, for example, managers will issue new or additional equity when stock markets are "hot" and borrow when bond markets favor borrowers with low interest rates. Both statements are correct O Both statements are false O S2 is correct but S1 is false O S1 is correct but S2 is false

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